IRS announces new retirement plan limitations for 2017
On Oct. 27, 2016, the IRS announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for the 2017 tax year. The limits are based upon the Social Security cost-of-living increases. Many of the limits remain the same and a few have changed.
| 2016 | 2017 | |
| 401(k),403(b) and 457(b) deferral limits | $18,000 | $18,000 |
| 401(k) and 403(b) catch-up deferral limits | $6,000 | $6,000 |
| Annual limitation on compensation | $265,000 | $270,000 |
| Defined contribution limitation | $53,000 | $54,000 |
| Defined benefit limitation | $210,000 | $215,000 |
| Highly compensated employee compensation threshold | $120,000 | $120,000 |
| Key employee compensation - officer threshold | $170,000 | $175,000 |
| SIMPLE deduction | $12,500 | $12,500 |
| SIMPLE catch-up contribution | $3,000 | $3,000 |
| IRA contribution limit | $5,500 | $5,500 |
| IRA catch-up contribution limit | $1,000 | $1,000 |
| Social Security wage base | $118,500 | $127,000 |
For more information or if you have questions, please contact one of the attorneys listed below.
